49 app stocks that should go up 1000% and one that won’t

By Cody Willard

I’ve been both long and short RIMM at various times over the years. Most recently we covered our very profitable RIMM short position in my newsletter’s model portfolio near $50 a share. RIMM’s trying to get seriously into the app game — and even the tablet computing game. I think they’re ill-equipped to continue to compete with Google’s Android phones and Apple’s iPhones — which are truly app platforms rather than converted email-platforms.

I’ve spent the last few months studying the the App Revolution, the fastest growing market in the history of capitalism, in which we’re moving from a PC/browser-based networking world to a smartphone/app-based networking world, has an installed base of a couple hundred million people right now and will hit a billion people using smartphones in the next three to five years.

I realized that I needed a map of which companies are doing what. So I broke down the app ecosystem into eight different categories and started analyzing every single stock that’s got big exposure to the App Revolution right now. And then I assigned each stock a rating on a scale of 1 to 10, just like my old mentor Jim Cramer used to demand I do before I’d go for my annual 1 on 1 pow-wow in which we’d go through every single position in my hedge fund portfolio and kick out the weakest ones.

The resulting 56 page report is now called “Cody Willard’s 50 Stocks for the App Revolution” and it has helped me understand how we should be positioning the part of our Revolution Investing model portfolio that we’ve allocated to the this incredible market place. I’m offering the report to the public for $79 at http://AppRevolutionStocks.com or as an eBook for your Kindle or iPhone at http://www.smashwords.com/books/view/31192. Or you can sign up for my weekly Revolution Investing newsletter and I’ll send you one section of the report per week and then the whole report when complete your one month trial.

Here’s the write up RIMM from the App Revolution Stocks report:

Company: RIMM – Research in Motion Limited

Summary: Research in Motion manufactures and sells mobile devices, including smart phones. Although far behind Apple’s i-phone and Google’s Android, it too will have a share of Apps that will ultimately run on its phones.

Apps and all things related to apps are in a huge growth cycle, and that while RIMM’s rightly been punished for losing market share in the smart phone market, especially in the US, it’s still going to show growth over the next few years — despite continuing to lose smart phone market share along the way.

The virtuous cycles that critical mass brings to a tech company, has recently ended for RIMM. RIMM had critical mass for the enterprise email solutions for a decade, but the technology has been creatively destructed by the very similar and more flexible (though still slightly less reliable) email/message/social-networking capabilities of the iPhone and Android…which, as I wrote yesterday, are just starting to see the virtuous cycles that come from critical mass.

How do you know when a company’s got critical mass, or for that matter, when they’re starting to get it or when they’re losing it? There’s not set formula, of course. You’ve got to watch the trends, the technologies, the companies, the consumers actions and where the developers are going.

Revolution Investing rating: 2/10

To get my Revolution Investing analysis and rating for RIMM, Motorola, Google, Apple, Marvell, Intel, Arm Holdings and 43 other app stocks some of which you’ve probably never heard of, you can simply order the report today by visiting http://AppRevolutionStocks.com and I’ll personally email you the report or get it as an eBook for your Kindle or iPhone at http://www.smashwords.com/books/view/31192.

In the report, I give you some of my trademarked cut-throat Revolution Investing analysis including some history of the company, how it’s trying to position itself for the app revolution and how much I like or dislike the investment prospects for that company.

And for those of you who really just want a short hand rating system, don’t worry. I put a Revolution Investing rating from 1 to 10 on each stock.

I. App platforms/software: (8 stocks)

II. App gadget vendors: (7 stocks)

III. App component suppliers: (12 stocks)

IV. App network infrastructure: (6 stocks)

V. App Infrastructure Component Suppliers: (3 stocks)

VI. App equipment contractors: (5 stocks)

VII. App network providers: (6 stocks)

VIII. App retailers: (3 stocks)

Get ‘em before they’re hot, dear readers. Here’s what one subscriber wrote me last week:

You can tell people that I bought AAPL, FFIV, and GOOG back several years ago when you recommended them in your newsletter. Also, that GOOG Call option and recently scaling into RVBD have been very profitable for me. Your newsletters have been the best investment I’ve made!

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About The Cody Word

Cody Willard writes the Revolution Investing investment newsletter for MarketWatch and posts the trades from his personal account at TradingWithCody.com He is the founder of WallStreetAll-Stars.com and the principal of CL Willard Capital. Cody serves as an adjunct professor at Seton Hall University and is on the University of New Mexico Alumni Board. He was an anchor on the Fox Business Network, where he was the co-host of the long-time #1-rated show on the network, Fox Business Happy Hour. Cody, a former hedge fund manager, and his stock picks and economic outlooks have been featured on NBC’s The Tonight Show with Jay Leno, ABC’s 20/20, CBS Evening News, CNBC’s SquawkBox, Jon Stewart’s The Daily Show, as well as in the Financial Times, Wall Street Journal, New York Times, and many other outlets.